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Using the pure premium ratemaking method with a five percent profit and contingencies factor, Insurer C ' s pure premium is $ 4 5 .

Using the pure premium ratemaking method with a five percent profit and contingencies factor, Insurer C's pure premium is $45. Its cost of issuing a policy and collecting the premium, is $2.50 per car-year regardless of Insurer C's premium size, rating class, or rating territory. Its other underwriting expenses such as commissions and premium tax, vary by premium size. Insurer C's variable expense equal 10 percent of the final premium. The rate per exposure unit rounded to the nearest dollar would be

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